The political finance systems of different countries, states/provinces or other jurisdictions may involve some or all of the following:

• campaign finance disclosure and reporting requirements;
• restrictions on size and source of contributions;
• campaign expenditure limits; and/or
• incentives such as public funding/subsidies, access to the media and/or free advertising.

These measures are generally adopted to reduce the corrupting influence that large donations or donations from certain sources may have on elections and the political process. They are also intended to encourage political competition and establish a “level playing field” including for electoral participants with less access to financial resources.

Political finance enforcement gives force and effect to the political finance legal requirements. Timely and fair enforcement can:

• uncover political finance irregularities and violations through audits of campaign finance reporting;
• change the practices of political parties and campaigns by publicizing violations and/or leading to imposition of administrative, civil and criminal sanctions; and
• remedy political finance violations by requiring the return of banned contributions or of public funding, or other sanctions including removal from elective office.

Enforcement Mechanisms

Each country’s legal framework determines which government institutions act as political finance regulators (PFRs) and which enforcement mechanisms they use. Mechanisms vary from one jurisdiction to another, but they generally include some or all of the following:

• Disclosure requirements. Campaigns are required to report their contributions, expenditures and all other financial transactions, and to produce documentation that substantiates their reporting. Compliance with this requirement can be promoted by providing training to parties and campaigns.
• Audit. The PFR audits campaign reporting and financial documentation to ensure accurate and honest disclosure, and to identify potential violations of the law.
• Oversight. External mechanisms (e.g. a formal complaints process) allow other electoral participants, civil society groups and the public to report suspected political finance violations.
• Investigation. The PFR investigates potential reporting irregularities, errors or fraud, and/or potential violations of the law. The PFR may need the authority to subpoena records, obtain the testimony of candidates and witnesses, and gain physical access to campaign offices and documents.
• Negotiation. Rather than resorting to civil action or criminal prosecution, the PFR may negotiate compliance or conciliation agreements with offending campaigns. The PFR may also use alternative dispute resolution.
• Administrative penalties. The PFR may impose sanctions in the form of expedited automatic penalties for relatively minor or simple violations, or graduated penalties for more serious or complex offences.
• Civil action. The PFR may file civil actions in either general or specialized courts to enforce political finance laws and/or seek monetary relief or injunctions.
• Criminal prosecution. The PFR may seek prosecution of potential criminal violations of political finance laws.

A Role for Civil Society and the Public

Civil society and the public have a crucial role to play in the effective enforcement of political finance laws. Non-governmental organizations and the media gather and disseminate information about political finance laws, publicize violations committed by electoral participants, and report on enforcement actions taken by the PFR against the violators. Negative publicity is often a more potent deterrent than the penalty that ultimately might be levied against a violator.

Non-governmental organizations and private citizens can also file complaints with the PFR about suspected political finance violations, conduct investigations of alleged irregularities or violations, bring third-party legal actions, and mobilize pro-reform political pressure or support.

Effective Practices

In every country the enforcement system is imperfect and represents a work in progress. Nevertheless, certain effective practices can be identified in effective enforcement.

• The political finance law should be clear and unambiguous, requiring political parties and candidates to make full financial disclosure and produce supporting documentation. The law must state which actions constitute violations, and must specify administrative, civil and/or criminal sanctions for offences.
• The law should establish an independent political finance regulator, with responsibility for administering and enforcing the political finance laws in an impartial and politically neutral manner.
• The law should give the PFR an oversight role, with authority to review and audit the financial reporting of candidates and parties, and to investigate them when necessary.
• The law should grant the PFR the authority and jurisdiction to enforce the law by imposing monetary, electoral or criminal sanctions on offenders at the administrative, civil or criminal level.
• The political finance legal system should allow and encourage the participation of civil society and the public in publicizing political finance issues, providing oversight and enforcing the law.
• The law should institutionalize incentives such as public funding/subsidies to political parties and/or candidates, but it should also allow for these incentives to be limited or withheld as a sanction.